Mexico hit by Cemex downgrade, U.S. bank worries

Mexico hit by Cemex downgrade, U.S. bank worries
Published: 24 February 2009

Mexican equities were knocked back to four-month lows Monday, with losses suffered by Cemex after a ratings downgrade and pressure from Wall Street, where stocks crumbled to 12-year lows.

Mexico’s IPC fell 2% to 17,956.40. It was the lowest close for the benchmark since Oct. 23, and its fifth decline in a row.

On Wall Street, investors remained on edge as the U.S. government prepared to release details this week about stress tests it plans to administer to financial institutions. The S&P 500 Index stumbled 4.9% after Fitch Ratings cut the company’s credit ratings, saying the company is facing a heavy debt load while three of its key markets -- the U.S., Spain and the U.K. -- are in "unprecedented downturns."